By design, any blockchain based start up is supposed to be transparent. What this means is that every enthusiast of ledger police can monitor transactions within the network and in case there are abnormally huge movements of coins from one address to another, then they more often press the siren. That’s exactly what happened on Tuesday when a user noted an abnormal movement of XRP worth billions changing hands within hours.
XRP Movement from Jed’s Founder Account
According to RTXP time stamps, the first large scale move involved a $740 million transaction where 2.1 billion XRPs were moved from an address: rHYTJDFrbCU1i2yCENTg9yjUrHHGaYTB4D to a receiver: r93oSNBKuFjuKt8GxhF8VYaGzzwsNDPaX5 with the transaction type marked as Payment.
A few seconds later, another similar payment hit the network but this time 4.6 billion XRP worth $1.6 billion at current market rates were moved from sender: r9kkWNia8PmpR44L7mWZn33Hpff3CCzLjA to Receiver: rDbWJ9C7uExThZYAwV8m6LsZ5YSX3sa6US.
For verification purposes, you can check out these transactions: https://xrpcharts.ripple.com/#/transactions/FA7BD9A684010DC448D11824F4D1F0D50A56887D125635A5AF68897B84268666
Now, while the community was curious to know who were behind these moves and whether they originated from an escrow or a founder’s account, it has been discovered that the account: r9kkWNia8PmpR44L7mWZn33Hpff3CCzLjA belongs to Jed MacCaleb and is a genesis account. Before moving on and forming his own successful start up, the Stellar Network, Jed used to work with Ripple and still holds a substantial amount of XRP at his disposal.
What It Means For XRP
What’s unique about this transaction from Jed is that these 4.6 billion XRP representing about four percent of the total coins in circulation are flowing to a multi-sig account. This is fuelling speculations that Jed might have been bought out but the caveat here is that there is already an agreement between Jed and Ripple. In this agreement, there is a clause that limits the amount of XRP Jed can dispose off in a seven year period. As dictated by the agreement, Jed as one of the founder can only sell as much as 2 billion of XRP after the seventh year.
Could this final liquidation by Jed open doors for mainstream banks to adopt XRP not that there is no single entity that can influence XRP price?